Steel demand may rise by Q1-end

Print this page Posted on : 02-12-2009 by recycleinme.com

"China's package, which will increase spending on housing and railroads, has revived steel demand."

Iron ore prices may double

Feb. 10

Iron ore export prices are expected to double from last years low as China, the world's biggest steel producer, raises purchases, an industry group said. Prices for immediate delivery are expected to increase to as much as $90 a tonne in the near-term, compared with $45 in November, said Mr R.K. Sharma, secretary general of the Federation of Indian Mineral Industries, a grouping of iron-ore miners.

Prices are currently about $84 a tonne, he said. China's steelmakers, which cut output in the second half, are benefiting from the 4 trillion yuan ($585 billion) federal stimulus plan to revive growth. India's iron-ore exports in December rose 38 per cent, the first gain in eight months. The tone of the market has become bullish, Mr Sharma said. {ndash} Bloomberg

Source : Business Line